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CPA Tcp Quiz

CPA Tcp Quiz: Macrs Section 179 And Bonus Depreciation

Practice Macrs Section 179 And Bonus Depreciation in CPA Tcp with focused quiz questions that help you check what you know, review explanations, and build confidence with test-style prompts.

Question 1 / 14

0 of 14 answered

In 2025, a sole proprietorship operating a manufacturing business purchased and placed in service qualifying equipment on December 20, 2025, for 1,300,000.ThetaxpayerpurchasednootherSection179propertyduring2025.For2025,theSection179annualdeductionlimitis1,300,000. The taxpayer purchased no other Section 179 property during 2025. For 2025, the Section 179 annual deduction limit is 1,300,000.ThetaxpayerpurchasednootherSection179propertyduring2025.For2025,theSection179annualdeductionlimitis1,250,000 and the phase-out threshold begins at $3,130,000. What is the maximum Section 179 deduction for 2025 (ignoring the taxable income limitation)?

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What this quiz covers

This quiz focuses on Macrs Section 179 And Bonus Depreciation, giving you a quick way to practice the rules, question types, and explanations that matter most for CPA Tcp.

How to use this quiz

Try each quiz question before looking at the correct answer. Use the explanations to review missed ideas, then come back to similar questions until the pattern feels familiar.

All questions

Question 1

In 2025, a sole proprietorship operating a manufacturing business purchased and placed in service qualifying equipment on December 20, 2025, for 1,300,000.ThetaxpayerpurchasednootherSection179propertyduring2025.For2025,theSection179annualdeductionlimitis1,300,000. The taxpayer purchased no other Section 179 property during 2025. For 2025, the Section 179 annual deduction limit is 1,300,000.ThetaxpayerpurchasednootherSection179propertyduring2025.For2025,theSection179annualdeductionlimitis1,250,000 and the phase-out threshold begins at $3,130,000. What is the maximum Section 179 deduction for 2025 (ignoring the taxable income limitation)?

  1. $1,300,000, because the Section 179 deduction can exceed the annual limit if placed in service late in the year.
  2. $1,250,000, because the annual limit applies and no phase-out reduction is triggered. (correct answer)
  3. $0, because Section 179 is not allowed for equipment placed in service in December.
  4. $780,000, because the annual limit is reduced by 60% bonus depreciation in 2025.

Explanation: This question tests Section 179 annual limit application. The key facts are equipment costing 1,300,000withnootherSection179purchases,annuallimitof1,300,000 with no other Section 179 purchases, annual limit of 1,300,000withnootherSection179purchases,annuallimitof1,250,000, and phase-out threshold of 3,130,000.Sincetotalpurchases(3,130,000. Since total purchases (3,130,000.Sincetotalpurchases(1,300,000) don't exceed the phase-out threshold, the full annual limit is available. The maximum Section 179 deduction is limited to $1,250,000, even though the equipment cost exceeds this amount. Answer A incorrectly allows deduction above the annual limit. Answer C incorrectly prohibits December placements. Answer D incorrectly reduces the limit based on bonus depreciation. The annual limit caps Section 179 deductions regardless of individual asset costs.

Question 2

In 2025, a sole proprietorship operating a manufacturing business purchased and placed in service qualifying equipment on June 30, 2025, for 500,000.TheequipmentiseligibleforbonusdepreciationunderInternalRevenueCodeSection168(k)at60500,000. The equipment is eligible for bonus depreciation under Internal Revenue Code Section 168(k) at 60% for 2025, and the taxpayer does not elect out. If the taxpayer elects Section 179 expense of 500,000.TheequipmentiseligibleforbonusdepreciationunderInternalRevenueCodeSection168(k)at60500,000 under Internal Revenue Code Section 179, how is bonus depreciation applied in the first year?

  1. Bonus depreciation is 300,000,computedas60300,000, computed as 60% of 300,000,computedas60500,000, and Section 179 is taken on the remaining $200,000.
  2. Bonus depreciation is 0becausetheremainingbasisafterafullSection179electionis0 because the remaining basis after a full Section 179 election is 0becausetheremainingbasisafterafullSection179electionis0. (correct answer)
  3. Bonus depreciation is $500,000 because 100% bonus depreciation applies in 2025 when Section 179 is elected.
  4. Bonus depreciation is disallowed because Section 179 and bonus depreciation cannot both be claimed on the same asset.

Explanation: This question tests the interaction when Section 179 fully expenses an asset. The key facts are equipment costing 500,000withaSection179electionof500,000 with a Section 179 election of 500,000withaSection179electionof500,000 and 60% bonus depreciation available. When Section 179 equals the full asset cost, the remaining basis is 0,sobonusdepreciationisalso0, so bonus depreciation is also 0,sobonusdepreciationisalso0 (60% × 0=0 = 0=0). Answer A incorrectly calculates bonus on the original cost. Answer C incorrectly applies 100% bonus depreciation. Answer D incorrectly prohibits using both methods on the same asset. Section 179 reduces basis before bonus depreciation applies, so full Section 179 expensing leaves no basis for bonus depreciation.

Question 3

In 2025, a sole proprietorship operating a manufacturing business purchased and placed in service qualifying equipment on April 30, 2025, for $700,000. The equipment is eligible for bonus depreciation under Internal Revenue Code Section 168(k) at 60% for 2025, and the taxpayer does not elect out. How is bonus depreciation applied to the asset in the first year (before regular MACRS depreciation)?

  1. 420,000,computedas60420,000, computed as 60% of 420,000,computedas60700,000, with the remaining basis depreciated under MACRS. (correct answer)
  2. $700,000, because bonus depreciation is 100% in 2025.
  3. $0, because bonus depreciation is available only for real property improvements.
  4. 350,000,computedas50350,000, computed as 50% of 350,000,computedas50700,000, with the remaining basis depreciated under MACRS.

Explanation: This question tests straightforward bonus depreciation calculation. The key facts are qualifying equipment costing 700,000with60700,000 with 60% bonus depreciation for 2025. Bonus depreciation equals 700,000with60700,000 × 60% = 420,000,withtheremaining420,000, with the remaining 420,000,withtheremaining280,000 basis depreciated under regular MACRS. Answer B incorrectly applies 100% bonus depreciation. Answer C incorrectly limits bonus to real property. Answer D incorrectly uses a 50% rate. The 60% bonus depreciation rate for 2025 applies uniformly to all qualifying property regardless of asset type or placement date.

Question 4

In 2025, a calendar-year C corporation operating a manufacturing business purchased and placed in service qualifying equipment on May 5, 2025, for $800,000. The equipment is eligible for bonus depreciation under Internal Revenue Code Section 168(k) at 60% for 2025, and the corporation does not elect out. How is bonus depreciation applied to the asset in the first year (before regular MACRS depreciation)?

  1. $0, because bonus depreciation is not available to C corporations.
  2. $800,000, because 100% bonus depreciation applies in 2025.
  3. 480,000,computedas60480,000, computed as 60% of 480,000,computedas60800,000, with the remainder depreciated under MACRS. (correct answer)
  4. 400,000,computedas50400,000, computed as 50% of 400,000,computedas50800,000, with the remainder depreciated under MACRS.

Explanation: This question tests basic bonus depreciation calculation for C corporations. The key facts are qualifying equipment costing 800,000with60800,000 with 60% bonus depreciation for 2025. Bonus depreciation equals 800,000with60800,000 × 60% = 480,000,withtheremaining480,000, with the remaining 480,000,withtheremaining320,000 basis depreciated under regular MACRS. Answer A incorrectly states C corporations can't claim bonus depreciation. Answer B incorrectly applies 100% bonus depreciation. Answer D incorrectly uses a 50% rate. All business entities, including C corporations, are eligible for bonus depreciation on qualifying property.

Question 5

In 2025, an S corporation operating a manufacturing business purchased and placed in service new qualifying equipment on April 20, 2025, for 600,000.TheequipmentqualifiesforbonusdepreciationunderInternalRevenueCodeSection168(k)at60600,000. The equipment qualifies for bonus depreciation under Internal Revenue Code Section 168(k) at 60% for 2025, and the S corporation does not elect out of bonus depreciation. If the S corporation elects a 600,000.TheequipmentqualifiesforbonusdepreciationunderInternalRevenueCodeSection168(k)at60100,000 Section 179 deduction under Internal Revenue Code Section 179, how is bonus depreciation applied in the first year?

  1. Bonus depreciation is computed on the full $600,000 cost, because Section 179 does not reduce basis for bonus depreciation.
  2. Bonus depreciation is 300,000,computedas60300,000, computed as 60% of 300,000,computedas60500,000 remaining basis after the Section 179 deduction. (correct answer)
  3. Bonus depreciation is 360,000,computedas60360,000, computed as 60% of 360,000,computedas60600,000, and Section 179 is claimed afterward on the remainder.
  4. Bonus depreciation is $0 because claiming Section 179 makes the asset ineligible for bonus depreciation.

Explanation: This question tests the interaction between Section 179 and bonus depreciation. The key facts are equipment cost of 600,000,aSection179electionof600,000, a Section 179 election of 600,000,aSection179electionof100,000, and 60% bonus depreciation for 2025. Section 179 is applied first, reducing the asset's basis from 600,000to600,000 to 600,000to500,000. Bonus depreciation is then calculated on the remaining basis: 500,000×60500,000 × 60% = 500,000×60300,000. Answer A incorrectly applies bonus depreciation to the full cost. Answer C incorrectly applies bonus depreciation before Section 179. Answer D incorrectly states that claiming Section 179 disqualifies bonus depreciation. The proper order is Section 179 first, then bonus depreciation on the remaining basis, then regular MACRS on any remainder.

Question 6

In 2025, a calendar-year C corporation operating a manufacturing business purchased and placed in service a used machine on May 12, 2025, for $400,000. The machine is qualifying tangible personal property and is eligible for bonus depreciation under Internal Revenue Code Section 168(k) at 60% for 2025, assuming all requirements are met. How is bonus depreciation applied to the asset in the first year (before regular MACRS depreciation)?

  1. $0, because used property is never eligible for bonus depreciation.
  2. 240,000,computedas60240,000, computed as 60% of 240,000,computedas60400,000, with the remaining basis depreciated under MACRS. (correct answer)
  3. $400,000, because 100% bonus depreciation applies in 2025.
  4. 200,000,computedas50200,000, computed as 50% of 200,000,computedas50400,000, with the remaining basis depreciated under MACRS.

Explanation: This question tests bonus depreciation eligibility for used property in 2025. The key facts are a used machine purchased for 400,000with60400,000 with 60% bonus depreciation available for 2025. Used property acquired after September 27, 2017, is eligible for bonus depreciation if it meets certain requirements (first use by the taxpayer, etc.). Bonus depreciation is calculated as 400,000with60400,000 × 60% = 240,000,withtheremaining240,000, with the remaining 240,000,withtheremaining160,000 basis depreciated under regular MACRS. Answer A incorrectly states used property is never eligible. Answer C incorrectly applies 100% bonus depreciation. Answer D incorrectly uses a 50% rate. The Tax Cuts and Jobs Act expanded bonus depreciation to include qualifying used property.

Question 7

In 2025, a partnership operating a manufacturing business purchased and placed in service qualifying equipment on January 2, 2025, for 1,600,000.Total2025purchasesofSection179propertywere1,600,000. Total 2025 purchases of Section 179 property were 1,600,000.Total2025purchasesofSection179propertywere3,500,000. For 2025, the Section 179 annual limit is 1,250,000andthephase−outthresholdbeginsat1,250,000 and the phase-out threshold begins at 1,250,000andthephase−outthresholdbeginsat3,130,000. What is the maximum Section 179 deduction for 2025 (ignoring the taxable income limitation)?

  1. $1,250,000, because the annual limit is not reduced by total purchases.
  2. 880,000,computedas880,000, computed as 880,000,computedas1,250,000  (3,500,000  3,130,000). (correct answer)
  3. 0,becausetotalpurchasesexceed0, because total purchases exceed 0,becausetotalpurchasesexceed3,130,000 by at least $250,000.
  4. 1,010,000,computedas1,010,000, computed as 1,010,000,computedas1,250,000  (3,500,000  3,240,000).

Explanation: This question tests Section 179 phase-out calculation with multiple assets. The key facts are specific equipment of 1,600,000,totalSection179purchasesof1,600,000, total Section 179 purchases of 1,600,000,totalSection179purchasesof3,500,000, annual limit of 1,250,000,andphase−outthresholdof1,250,000, and phase-out threshold of 1,250,000,andphase−outthresholdof3,130,000. The phase-out reduction equals 3,500,000−3,500,000 - 3,500,000−3,130,000 = 370,000.ThemaximumSection179deductionis370,000. The maximum Section 179 deduction is 370,000.ThemaximumSection179deductionis1,250,000 - 370,000=370,000 = 370,000=880,000. Answer A incorrectly ignores the phase-out. Answer C incorrectly eliminates the deduction entirely. Answer D uses incorrect calculation methodology. The phase-out is based on total Section 179 property purchases, not individual asset amounts.

Question 8

In 2025, a sole proprietorship operating a delivery service purchased and placed in service a new cargo van on June 1, 2025, for $60,000, used 80% for business and 20% for personal use. The van is qualifying property under Internal Revenue Code Section 179 and is eligible for bonus depreciation under Internal Revenue Code Section 168(k) (60% for 2025). What is the maximum Section 179 deduction that may be elected for 2025 for this van (ignoring taxable income and annual limit/phase-out constraints)?

  1. $60,000, because Section 179 is based on total cost regardless of business-use percentage.
  2. $48,000, because Section 179 is limited to the business-use portion of the cost basis. (correct answer)
  3. $36,000, because the 60% bonus depreciation rate limits the Section 179 election.
  4. $0, because mixed-use vehicles are not eligible for Section 179.

Explanation: This question tests Section 179 calculation for mixed-use property. The key facts are a van costing 60,000with8060,000 with 80% business use and 20% personal use. Section 179 is limited to the business-use portion of an asset's cost basis, calculated as 60,000with8060,000 × 80% = $48,000. Answer A incorrectly allows Section 179 on the full cost regardless of business use. Answer C incorrectly applies the 60% bonus rate to limit Section 179. Answer D incorrectly states mixed-use vehicles are ineligible for Section 179. The business-use percentage limitation ensures Section 179 benefits only apply to the portion of the asset used in the trade or business.

Question 9

In 2025, an S corporation that operates a manufacturing business purchased and placed in service new machinery (7-year property under Internal Revenue Code Section 168) on July 1, 2025, for $900,000. The machinery is eligible for bonus depreciation under Internal Revenue Code Section 168(k) at the 60% rate for 2025, and the S corporation does not elect out of bonus depreciation. How is bonus depreciation applied to the asset in the first year (before applying regular MACRS depreciation)?

  1. Bonus depreciation is $0 because bonus depreciation is not allowed for 7-year property.
  2. Bonus depreciation is $900,000 because 100% bonus depreciation applies in 2025.
  3. Bonus depreciation is 540,000,computedas540,000, computed as 540,000,computedas900,000 60%, with the remaining basis depreciated under MACRS. (correct answer)
  4. Bonus depreciation is 450,000,computedas450,000, computed as 450,000,computedas900,000 50%, with the remaining basis depreciated under MACRS.

Explanation: This question tests bonus depreciation calculation under Section 168(k) for 2025. The key facts are that new machinery (7-year MACRS property) was purchased for 900,000andbonusdepreciationis60900,000 and bonus depreciation is 60% for 2025. Bonus depreciation is calculated as 60% of the asset's basis before any other depreciation, which equals 900,000andbonusdepreciationis60900,000 × 60% = 540,000.Theremaining540,000. The remaining 540,000.Theremaining360,000 basis is then depreciated under regular MACRS rules. Answer A is incorrect because 7-year property is eligible for bonus depreciation. Answer B incorrectly applies 100% bonus depreciation when the 2025 rate is 60%. Answer D incorrectly uses a 50% rate instead of the 60% rate for 2025.

Question 10

In 2025, a partnership operating a manufacturing business purchased and placed in service qualifying equipment on March 1, 2025, for 2,900,000.Total2025purchasesofSection179propertywere2,900,000. Total 2025 purchases of Section 179 property were 2,900,000.Total2025purchasesofSection179propertywere3,140,000. For 2025, the Section 179 annual limit is 1,250,000andthephase−outthresholdbeginsat1,250,000 and the phase-out threshold begins at 1,250,000andthephase−outthresholdbeginsat3,130,000. What is the maximum Section 179 deduction for 2025 (ignoring the taxable income limitation)?

  1. 1,250,000,becausethelimitisnotreduceduntilpurchasesexceed1,250,000, because the limit is not reduced until purchases exceed 1,250,000,becausethelimitisnotreduceduntilpurchasesexceed3,500,000.
  2. 1,240,000,computedas1,240,000, computed as 1,240,000,computedas1,250,000  (3,140,000  3,130,000). (correct answer)
  3. $0, because any amount above the threshold eliminates the Section 179 deduction.
  4. 1,180,000,computedas1,180,000, computed as 1,180,000,computedas1,250,000  60% bonus depreciation.

Explanation: This question tests Section 179 phase-out with slight excess over threshold. The key facts are equipment costing 2,900,000,totalpurchasesof2,900,000, total purchases of 2,900,000,totalpurchasesof3,140,000, annual limit of 1,250,000,andphase−outthresholdof1,250,000, and phase-out threshold of 1,250,000,andphase−outthresholdof3,130,000. The phase-out reduction equals 3,140,000−3,140,000 - 3,140,000−3,130,000 = 10,000.ThemaximumSection179deductionis10,000. The maximum Section 179 deduction is 10,000.ThemaximumSection179deductionis1,250,000 - 10,000=10,000 = 10,000=1,240,000. Answer A incorrectly ignores the phase-out. Answer C incorrectly eliminates the entire deduction. Answer D incorrectly involves bonus depreciation in the Section 179 calculation. Even small amounts over the phase-out threshold trigger dollar-for-dollar reductions.

Question 11

In 2025, a sole proprietorship operating a delivery service purchased and placed in service a new delivery truck (gross vehicle weight rating over 6,000 pounds) on March 15, 2025, for 120,000,used100120,000, used 100% for business. The truck qualifies for Section 179 under Internal Revenue Code Section 179 and is eligible for bonus depreciation under Internal Revenue Code Section 168(k) (60% for 2025). How is bonus depreciation applied to the asset in the first year if the taxpayer elects a 120,000,used10070,000 Section 179 deduction?

  1. Bonus depreciation is 72,000,computedas6072,000, computed as 60% of 72,000,computedas60120,000, and Section 179 is taken afterward.
  2. Bonus depreciation is 30,000,computedas6030,000, computed as 60% of the 30,000,computedas6050,000 remaining basis after Section 179. (correct answer)
  3. Bonus depreciation is $0, because any Section 179 election makes the truck ineligible for bonus depreciation.
  4. Bonus depreciation is $50,000, because bonus depreciation equals the remaining basis after Section 179.

Explanation: This question tests the Section 179 and bonus depreciation interaction for vehicles. The key facts are a delivery truck costing 120,000,Section179electionof120,000, Section 179 election of 120,000,Section179electionof70,000, and 60% bonus depreciation for 2025. After the Section 179 deduction, the remaining basis is 120,000−120,000 - 120,000−70,000 = 50,000.Bonusdepreciationisthencalculatedas50,000. Bonus depreciation is then calculated as 50,000.Bonusdepreciationisthencalculatedas50,000 × 60% = $30,000. Answer A incorrectly applies bonus to the full cost. Answer C incorrectly states Section 179 eliminates bonus eligibility. Answer D incorrectly states bonus equals the remaining basis. The proper calculation order ensures taxpayers maximize benefits by applying Section 179 first, then bonus depreciation to the reduced basis.

Question 12

In 2025, a calendar-year C corporation operating a manufacturing business placed in service 3,200,000ofqualifyingequipment(alleligibleunderInternalRevenueCodeSection179)onSeptember30,2025.ThecorporationpurchasednootherSection179propertyin2025.For2025,theSection179annuallimitis3,200,000 of qualifying equipment (all eligible under Internal Revenue Code Section 179) on September 30, 2025. The corporation purchased no other Section 179 property in 2025. For 2025, the Section 179 annual limit is 3,200,000ofqualifyingequipment(alleligibleunderInternalRevenueCodeSection179)onSeptember30,2025.ThecorporationpurchasednootherSection179propertyin2025.For2025,theSection179annuallimitis1,250,000 and the phase-out threshold begins at $3,130,000. What is the maximum Section 179 deduction for 2025 (ignoring the taxable income limitation)?

  1. 1,250,000,becausethelimitisnotreducedunlesspurchasesexceed1,250,000, because the limit is not reduced unless purchases exceed 1,250,000,becausethelimitisnotreducedunlesspurchasesexceed3,500,000.
  2. 1,180,000,computedas1,180,000, computed as 1,180,000,computedas1,250,000  (3,200,000  3,130,000). (correct answer)
  3. $0, because any amount over the threshold fully eliminates the Section 179 deduction.
  4. 1,220,000,computedas1,220,000, computed as 1,220,000,computedas1,250,000  (3,200,000  3,100,000).

Explanation: This question tests Section 179 phase-out reduction calculation for 2025. The key facts are total purchases of 3,200,000,anannuallimitof3,200,000, an annual limit of 3,200,000,anannuallimitof1,250,000, and a phase-out threshold of 3,130,000.Thephase−outreductionequalstheexcessofpurchasesoverthethreshold:3,130,000. The phase-out reduction equals the excess of purchases over the threshold: 3,130,000.Thephase−outreductionequalstheexcessofpurchasesoverthethreshold:3,200,000 - 3,130,000=3,130,000 = 3,130,000=70,000. The maximum Section 179 deduction is 1,250,000−1,250,000 - 1,250,000−70,000 = 1,180,000.AnswerAincorrectlystatesnoreductionoccurs.AnswerCincorrectlyeliminatestheentirededuction.AnswerDusesanincorrectphase−outthresholdof1,180,000. Answer A incorrectly states no reduction occurs. Answer C incorrectly eliminates the entire deduction. Answer D uses an incorrect phase-out threshold of 1,180,000.AnswerAincorrectlystatesnoreductionoccurs.AnswerCincorrectlyeliminatestheentirededuction.AnswerDusesanincorrectphase−outthresholdof3,100,000. The phase-out mechanism reduces the annual limit dollar-for-dollar by the amount purchases exceed $3,130,000.

Question 13

In 2025, a calendar-year C corporation operating a manufacturing business purchased and placed in service a new assembly robot on January 20, 2025, for 2,000,000.Total2025purchasesofSection179propertywere2,000,000. Total 2025 purchases of Section 179 property were 2,000,000.Total2025purchasesofSection179propertywere4,500,000. For 2025, the Section 179 annual limit is 1,250,000andthephase−outthresholdbeginsat1,250,000 and the phase-out threshold begins at 1,250,000andthephase−outthresholdbeginsat3,130,000. What is the maximum Section 179 deduction for 2025 (ignoring the taxable income limitation)?

  1. $1,250,000, because the annual limit applies regardless of total purchases.
  2. 0,becausethephase−outreducesthe0, because the phase-out reduces the 0,becausethephase−outreducesthe1,250,000 limit by $1,370,000, eliminating the deduction. (correct answer)
  3. 630,000,computedas630,000, computed as 630,000,computedas2,000,000  60% bonus depreciation.
  4. 1,880,000,computedas1,880,000, computed as 1,880,000,computedas1,250,000 + 60% bonus depreciation.

Explanation: This question tests complete Section 179 phase-out scenarios. The key facts are equipment costing 2,000,000,totalpurchasesof2,000,000, total purchases of 2,000,000,totalpurchasesof4,500,000, annual limit of 1,250,000,andphase−outthresholdof1,250,000, and phase-out threshold of 1,250,000,andphase−outthresholdof3,130,000. The phase-out reduction equals 4,500,000−4,500,000 - 4,500,000−3,130,000 = 1,370,000.Sincethisreduction(1,370,000. Since this reduction (1,370,000.Sincethisreduction(1,370,000) exceeds the annual limit (1,250,000),theSection179deductioniscompletelyeliminated:1,250,000), the Section 179 deduction is completely eliminated: 1,250,000),theSection179deductioniscompletelyeliminated:1,250,000 - 1,370,000=1,370,000 = 1,370,000=0. Answer A incorrectly ignores the phase-out. Answers C and D incorrectly calculate bonus depreciation when the question asks only about Section 179. The phase-out can completely eliminate Section 179 benefits when purchases significantly exceed the threshold.

Question 14

In 2025, an S corporation operating a delivery service purchased and placed in service a new delivery vehicle on September 5, 2025, for $80,000, used 100% for business. The vehicle qualifies for Section 179 under Internal Revenue Code Section 179 and is eligible for bonus depreciation under Internal Revenue Code Section 168(k) at 60% for 2025. What is the maximum Section 179 deduction that may be elected for 2025 for this vehicle (ignoring taxable income and annual limit/phase-out constraints)?

  1. $48,000, because the Section 179 deduction is limited to 60% of cost in 2025.
  2. $0, because vehicles are not qualifying property for Section 179.
  3. $80,000, because Section 179 may be elected up to the asset's qualifying cost (business-use portion). (correct answer)
  4. $1,250,000, because the Section 179 annual limit is the minimum deduction for any qualifying asset.

Explanation: This question tests basic Section 179 eligibility for vehicles. The key facts are a delivery vehicle costing 80,000used10080,000 used 100% for business. The maximum Section 179 deduction that may be elected equals the full 80,000used10080,000 cost (subject to annual limits and phase-out rules not at issue here). Answer A incorrectly limits Section 179 to 60% of cost. Answer B incorrectly states vehicles don't qualify for Section 179. Answer D incorrectly applies the annual limit as a minimum. Delivery vehicles are qualifying Section 179 property, and the deduction can equal the full business-use cost subject to applicable limitations.